Binding Agreement

A binding agreement is a legally enforceable promise between two or more parties. When all parties agree and intend to be legally bound, the agreement creates rights and obligations they must follow. This can be in writing or verbal, depending on the situation. For example, signing a contract to buy a house or employment agreement are binding, meaning both sides are legally required to fulfill their commitments. If someone doesn’t hold up their end, the other party can seek legal remedy, such as damages or specific performance.